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217 <br />summary sheet also explain the PPA and how the buyout would work and that <br />218 <br />potential cost to the city. <br />219 <br />220 <br />Mr. Kroll advised clarified that the investor bankrolled the entire project, with no <br />221 <br />city money in the project, while the city anticipated a 17% to 18% energy savings <br />222 <br />from the current electric blended rate being paid. Mr. Kroll noted the buyout <br />223 <br />clause in the contract would be determined by an appraisal at fair market value <br />224 <br />and remaining years of the contract, at the discounted energy rate and that fair <br />225 <br />market value. <br />226 <br />227 <br />Member Seigler asked what recourse the city would have if the original investor <br />228 <br />sold the contract to an entity the city may not be comfortable dealing with. <br />229 <br />230 Mr. Kroll noted that the current investor is interested in holding the contract long - <br />231 term as that was their area of expertise and business m el to acquire and hold <br />232 onto those assets for the full duration of the contract; with th ' own operating and <br />233 maintenance department set up accordingly. <br />234 NEL <br />235 Chair Cihacek asked staff to ensure the contract included a clause or negotiations <br />236 addressed the city's first right otrefusal and an option not to contract with any <br />237 other firms or individuals at their discretion. <br />238 <br />239 Mr. Kroll advised that standard contract language would provide that the city <br />240 would have to approve any sale transaction to change investors. <br />241 <br />242 At the request of Chair Cihacek, Mr. Kroll advised that the city would be <br />243 contracting with the investor itself, with the investor in turn contracting with <br />244 Sundial Solar to do the installation project. Mr. Kroll advised that the Power <br />245fex <br />urchase Agreement would be with sundial; but they would immediately sell the <br />246 ontract to the investor, with the city negotiating with the investor's attorneys on <br />247 act contract language.. <br />248 <br />249 At the request of MembeNSei, Mr. Kroll reiterated the intended solar arrays: a <br />250 200 KW system on the City Hall roof, and a 250 KW system on the Public Works <br />251 Maintenance Facility for a total of 450 KW. If the city chooses to include an <br />252 option for the Lexington Avenue fire station as well, Mr. Kroll anticipated that <br />253 could support a 100 KW system, depending on their engineering specifications, <br />254 which hadn't been looked into at this point. <br />255 <br />256 At the request of Member Heimerl, Mr. Culver advised that the total solar array at <br />257 450 KW would represent less than half the city's total power consumption; with <br />258 the OVAL and Skating Center consuming a considerable amount of the city's <br />259 total power. <br />260 <br />261 Specific to the Public Works facility, Mr. Kroll advised that that building alone <br />262 would max out the solar credit usage at the top end of the usage of about 80% <br />Page 6 of 19 <br />